Are There Organizations That Provide Counseling For People With Credit Issues?

Are there organizations that provide counseling for people with credit issues? Yes, we counsel people on the wise use of credit and we also have housing counseling, settlement counseling, and debt education.

"Yes, Springboard is an organization that counsels people on the wise use of credit, and we also have housing counseling, settlement counseling, and debt education," says Lori Lamb, a credit correction and education supervisor with Springboard Non-Profit Consumer Credit Management. She has worked in the credit industry for 12 years. Springboard is a non-profit credit management organization formed in 1974 by local business leaders and credit grantors. Their mission is to offer education on the wise use of credit.

Springboard feels that the cornerstone of financial freedom is personal finance education. "In fact, we feel so strongly about it that we have an entire section devoted to bringing you resources to help you on your journey towards financial freedom," the website states.

Another agency that helps consumers is the Federal Trade Commission, which helps people that are victims of credit fraud. As their website states, "If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy."

Credit counseling organizations are nonprofit, and work with you to solve your financial problems. Though they are non-profit, their services aren't free. Read the fine print before signing any contracts for their services. When trying to find an organization, pick someone that offers in person counseling, says FTC.gov. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. They can offer advice on managing money and debts, help you develop a budget, and offer free educational materials and workshops. All counselors should be certified and trained in the areas of consumer credit, money and debt management, and budgeting.

"Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems," the website states.

A debt Management plans is recommended when an individual has too much debt or is not able to repay debts. Typically, credit counselors recommend who to use and when to seek their advice.

"A DMP alone is not credit counseling, and are not for everyone," according to the FTC. "You should sign up for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money."

A lot of nonprofit organizations like Springboard are trying to get into the schools to teach high school and college students how to use credit wisely.

"I have a lot of interest in helping young adults, high school, and college students because when I was in the high school I knew how to balance checkbook from one of the classes I took and how to follow a stock, but they did not teach you anything about credit, late fees, over limit fees, how to read a mortgage loan, how to read a credit report; nothing that prepares you for the real world," says Lamb.

Another organization to look into is Myfico.com, which has a lot of information that will help people who don't know anything about credit, and even a simulator showing you how much your score will change according to different factors.